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11.1 GENERAL.
(Amended 5/02)
The policies in this chapter apply to the purchase of goods and services from all sources of funds administered by the University.
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11.2 AUTHORITY FOR PROCUREMENT.
The Purchasing Department administers the procurement of goods and services for all University departments by the authority delegated through the President by the Board of Regents, State of Iowa. The Director of Purchasing is vested with authority to obligate the University, while ensuring adherence to the statutes and administrative rules of the State of Iowa and to the policies and procedures of the Board of Regents, State of Iowa, and the University.
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11.3 RESPONSIBILITY AND OBJECTIVES.
The function of the Purchasing Office is the organization and administration of centralized purchasing services for all departments of the University. In providing these services and in accordance with sound business practices, the office seeks to realize for the University the maximum value for every dollar expended.
To achieve this goal, the Purchasing Office has been charged by the President of the University and the Board of Regents, State of Iowa, with responsibility for the following:
b. Maintaining liaison with the vendors that provide goods and services to the University.
c. Coordinating the procurement of goods and services for the academic, administrative, and research departments of the University.
d. Developing sources of supply to assure that the University departments have an adequate number of vendors from which to obtain supplies, equipment, and services.
e. The Purchasing Department follows the Code of Ethics of the National Association of Educational Procurement (NAEP), the professional association serving the purchasing/materials management professionals who support higher education and not-for-profit health care organizations. The NAEP Code of Ethics can be
found at www.naepnet.org/Content/NavigationMenu/AboutNAEB/GovernancePolicy/CodeofEthics/Code_of_Ethics.htm.
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11.5 COMPETITIVE BIDDING.
a. General. Competition within a free marketplace provides the best value for the consumer. By encouraging competition among viable vendors, the University strives to obtain goods and services at the best possible cost and quality. Negotiations for purchases, including requests for quotations of prices, must be accomplished through the Purchasing Department.
The state Code of Iowa, federal law, and the Board of Regents, State of Iowa, mandate competitive bidding for the purchase of University
Pursuant to Iowa law (IC 73.16(2)), The University of Iowa is required to post on the Department of Economic Development web site all competitive bids for goods and services 48 hours prior to posting on the University's procurement web site. Accordingly, departments must satisfy this requirement by timely submission of a requisition to Purchasing (see V-11.16 Reference Catalogs).
The two most effective formal methods of competitive bidding are the Request for Quotation (RFQ) and the Request for Proposal (RFP). These methods provide:
The Purchasing Agent routinely obtains several quotes, seeking the best price available. Purchasing Agents, in concert with the end users, develop specifications and send the RFQs to potential vendors. Vendors may then reply with a bid showing exact price, shipping costs, delivery schedule, payment terms, and other particulars of the items sought.
Purchasing makes the award to the vendor who submits the lowest priced offer whose goods meet or exceed the specifications stated in the RFQ. There is no discounting or manipulation of prices for products that exceed the specifications.
Contact the Purchasing Agent if you have any questions or concerns about a bid, a chosen vendor, or a low-bid product or service. (See Purchasing Policies and Procedures Guide, Appendix E, for a listing of Purchasing Department staff.)
c. Request for Proposal (RFP). The Request for Proposal (RFP) is used for acquisitions based on other significant factors in addition to price. Examples include capabilities, past performance, support, service, warranty and maintenance. It is difficult, if not impossible, to always place an exact dollar figure on the value of these characteristics and services.
The University uses a statistical assessment method as the standard for making awards based on many factors. The preparation of an RFP is an involved process, often taking weeks or months to generate a precise evaluation. Requesters should plan for this type of acquisition well in advance. The purchasing agent shall award the contract to the vendor whose proposal is in the best interest of the University.
d. Negotiations. With appropriate institutional review, both competitive negotiation and noncompetitive negotiation processes may replace written competitive bidding when the purchase is anticipated to exceed $10,000. The use of negotiated, non competitive, and sole source purchasing procedures must be justified.
11.6 BID SECURITY.
Bids requiring security shall be accompanied by and secured only by a cash deposit, cashier's check, certified check, or a bid bond in an amount of 5% of the bid. Bids accompanied and secured by any other form of bid security shall automatically be disqualified.
Certified checks and cashier's checks shall be made payable to The University of Iowa. Bid security shall be agreed upon as the measure of liquidated damages which owner will sustain by failure, neglect, or refusal of bidder to honor their offer and accept an award in accord with the contract documents.
Bid security, if in the form of a cash deposit, cashier's check, or certified check, will be returned within forty-eight (48) hours after the contract has been executed.
11.7 RELEASE OF BID INFORMATION.
11.8 WITHDRAWAL OF BIDS.
11.9 WAIVER OF BID REQUIREMENTS.
b. Emergency need. Life will be endangered, property will be destroyed, or considerable cost will be incurred because of events beyond the control of the department if the procurement is not completed without delay.
c. Sole source. There is only one person or firm that can provide the requirement. No other known person or firm is available with an equivalent service or supply. Departments must complete a sole source justification form (see www.uiowa.edu/~eforms) and receive approval from Purchasing prior to commencing the purchase process.
In order to justify a sole source purchase, one or more the following criteria must be substantiated in support of the justification:
(2) Compatibility for instructional purposes. This justification may be used if the goods are being purchased to supplement existing equipment in a classroom. The goods must match the existing equipment and is being purchased to provide uniformity for instructional purposes.
(3) Compatibility for research. This justification may be used if the main purpose for acquiring equipment or supplies is to replicate specific experiments, using the exact goods that produced the original results. You may also use this justification if you are collaborating with another researcher and can show that identical goods are required to fulfill your part of the research grant or contract.
(4) Only one supplier can be identified to supply compliant goods or services. In limited cases, only one supplier may exist to provide particular goods or services. When providing a justification based on the availability of one supplier, the goods or services must be defined in generic terms. Specifying patented products or processes, when not necessary to meet functional requirements, is not acceptable as a sole source justification. Justifications can be accepted more readily by providing information regarding attempts to locate other suppliers, such as letters, informal quotations, or telephone contacts.
(2) Bids have been solicited and no responsive bid (conforming to the central requirements of the solicitation) has been received.
a. Professional service contracts.
(2) Selection of a provider. Professional service agreements for greater than $25,000 must be selected through a competitive Request for Proposal (RFP) process unless the service is a sole source purchase that is appropriately documented. The $25,000 threshold is not based on a one-time cost, but rather on a cumulative cost for ongoing services under the terms of the project engagement. Professional service agreements, which are less than $25,000 over the course of service, may be entered into without using the required competitive bidding process. Total payment to a professional services provider for services provided to any one University department may not exceed $25,000 in a fiscal year, unless subject to competitive bidding or review and approval by the institutional purchasing department. Selection of a professional service provider shall be based on a variety of criteria including, but not limited to, demonstrated competence, knowledge, references, and unique qualifications to perform the services, in addition to offering a fair and reasonable price that is consistent with current market conditions. Additional criteria may be used as appropriate to the circumstances.
(3) Provider accountability. Work requirements should clearly define all performance objectives, work expectations, and project milestones, and hold the contractor accountable for successful completion of the resultant agreement. Requirements may include, but not be limited to, reports, training sessions, assessments, evaluations, or other tangible services.
(4) Provisions of professional service agreements. The following terms and conditions must be addressed:
(b) Period of performance. The resultant agreement must specify a start date and a completion date. While there may be exceptions, in most circumstances an end date to the agreement will be required. If an end date cannot be determined, a maximum time limit or maximum number of hours must be stated. Agreements with organizations are typically written for a specific term of successive years. In some instances, these agreements are annually renewable. Other provisions of an agreement may include a renewal clause beyond the original term of the agreement. Extended term agreements for individuals are discouraged.
(c) Compensation and payment. Compensation and payment terms include elements relating to cost and payment, such as maximum cost (i.e., not to exceed cost), cost per deliverable, hourly rates for individuals providing services, number of hours required, allowable expenses and total authorized-for expenses, and payment and invoicing procedures. Compensation and payment terms should also include a statement as to whether the Regent institution will pay expenses incurred by the contractor and, if so, which ones. Such expenses may include, but not be limited to, airfare (economy or coach class), lodging and subsistence necessary during periods of required travel, expenses incurred during travel for telephone, copying and postage, and private vehicle mileage. If other types of expenses are allowed, they must be clearly defined.
(d) Performance monitoring. The institution shall monitor the compliance with the terms and conditions of the agreement and applicable laws and regulations.
(e) Provision of liability. The provider may be required to show proof of insurance coverage and workers compensation in compliance with statutory requirements, in the form specified by the institution.
11.12 DELEGATION OF PURCHASING AUTHORITY.
11.13 MASTER LEASE.
11.14 CONFLICT OF INTEREST.
11.15 PURCHASES FROM UNIVERSITY FACULTY OR STAFF.
(2) "Financial relationship" means a partnership or other commercial relationship involving a joint venture between the faculty or staff member and another person.
(2) Services of faculty or staff, or members of their immediate household other than those in established businesses providing such services as outside contractors, unless approved in the budget or in advance by the Senior Vice President for Finance and Operations, are approved only after Purchasing has determined the services are either uniquely exclusive or otherwise beneficial to the University in comparison to other available sources of the required services.
(3) University faculty or staff members cannot be interested, directly or indirectly, in any contract to furnish material of any kind to or for the University. In addition, participation in direct sales (pyramiding) ventures is considered a direct or indirect interest in a contract and is encompassed by this policy. Based on special approvals, faculty or staff members may be reimbursed for out-of-pocket expenditures on presentation of approved vouchers with receipts or other acceptable evidence of actual amounts paid for items purchased for University use.
(4) Faculty or staff members who would benefit personally from the supplying of goods or services to the University by any prospective supplier may not participate in the decision process leading to the choice of supplier. Specifically, faculty or staff members who have or who reasonably anticipate having either an ownership interest in, a significant executive position in, or a consulting or other remunerative relationship with a prospective supplier may not participate in the recommendation of, drafting specifications for, or the decision to purchase the goods or services involved. Faculty or staff members who know that a member of their family (or any other person with whom they have a personal or financial relationship) has an ownership interest or significant executive position in a prospective supplier are also disqualified from participating in the purchasing of the goods and services. However, faculty or staff members whose sole ownership interest in a potential supplier is held by a fiduciary (such as TIAA-CREF, a blind trust, or a mutual fund) that has the power to acquire or dispose of the interest without consultation with the faculty or staff member are not disqualified from participation in the purchase decision.
(5) When a faculty or staff member is disqualified from participating in a procurement decision, the fact of the disqualification and the reason for it must be reported to others involved in the decision. If necessary, a substitute may take the faculty or staff member's place under procedures established by the Senior Vice President for Finance and Operations. Consult the Purchasing Policies and Procedures Guide for details.
11.17 REQUISITIONS.
Departmental requests for equipment, goods, and services are made on the University purchase requisition form. When preparing a requisition for an outside vendor, sign in to the FO Self Service page; under FO Applications click on E-Pro (Evouchers & PReqs). For step-by-step instructions for completing a requisition, see the online tutorial Purchase Requisitions Training (pdf). Complete instructions and procedures for preparation and submission are found in the Purchasing Policies and Procedures Guide.
(2) Requisitions for "advanced" and "expedited" orders, referred to as "confirming orders," enable staff members to make contingency and emergency purchases. Complete procedures are found in the Purchasing Policies and Procedures Guide.
Purchase orders are created and issued from requisitions initiated by departments. Two individuals must approve all requisitions. The first approval shall be that of the individual requesting/initiating a purchase, and the second approval shall be that of a departmental executive officer, designated subordinate, dean of the college, or other chief administrative officer.
c. Exceptions.
(2) Other non-purchase order alternatives are the procurement credit card and voucher and invoice under $2,000. When preparing a voucher, sign in to the FO Self Service page; under FO Applications click on E-Pro (Evouchers & PReqs). For step-by-step instructions for completing a voucher, see the online tutorial E-Voucher Initiator Tutorial. Complete instructions and procedures for preparation and submission are found in the Purchasing Policies and Procedures Guide.
Requisitions for supplies or services from campus sources are sent directly to the supplying departments, such as Printing Services, ITS, Medical Electronics, Medical Instrument Shop, Facilities Management, Facilities Management-Maintenance Stores, Chemistry Stores, Pharmacy Service, Photographic Service, Graphics Unit, and Audio Visual Center. All service requisitions initiated through Workflow require two signatures: an initiator and an approver. Contact each service department directly for further information.
11.19 NON-P.O. VOUCHERS AND PROCUREMENT CARDS.
11.20 PROCUREMENT CREDIT CARD.
11.21 VOUCHER REPORTS AND INVOICE.
If invoice items and the purchase order items match, the invoice is entered on line to create either an "Assumed Receipt" voucher report or a "Capital Equipment and/or >$10,000" voucher report. An e-mail is generated to the requestor, stating that a voucher has been created and requires the department's review. Departments must verify receipt of the item, note the receipt date, and maintain the documentation of receipt within the department. "Assumed Receipt" voucher payments are automatically made within the voucher terms -- the earliest of the discount due date or scheduled due date, unless Accounts Payable is notified by the department prior to that date. "Capital Equipment and/or >$10,000" voucher payments are automatically put on hold. When Accounts Payable receives the receipt and equipment information from the department, the hold is removed and payment made according to terms.
In the event of discrepancies, such as overpricing by a vendor for previously bid or quoted items, sales tax, or freight charges billed in error, Accounts Payable will process the invoice noting this "short pay" action and, when necessary, will review with Purchasing and/or the department. Accounts Payable then forwards the voucher report and related invoice documentation to the department for review and/or approval.
b. Important approval and return procedures. Complete procedures are spelled out in the Purchasing and Accounts Payable Requester's Guide and the Accounts Payable Policies. Highlights are listed below:
(2) Appropriate department review and/or approval is certification that goods received are as ordered, and charges are accepted.
(3) Errors, damage in transit, or other problems with orders should be reported promptly to Accounts Payable. Purchasing/Accounts Payable will work with the vendor, shipper, and the department to verify damage and initiate any actions necessary to rectify the situation.
(4) Freight and express charges are normally charged to the MFK shown on the purchase order.
(5) "Capital Equipment and/or >$10,000" voucher reports should be signed, completed, and returned to Accounts Payable, 202 Plaza Centre One, for payment.
b. Personal items such as desk pen sets, etc., except where necessary by reason of public use.
c. Luxury items -- items in which a more elaborate design or appointment has no practical advantage over a less elaborate and more economical item.
d. Printing-related equipment, which unnecessarily duplicates or replaces services provided by University service units. The Printing Department Manager, who shall conduct a need determination and, if necessary, develop equipment specifications on which prospective vendors may base quotations, must approve requests for purchase. Printing-related equipment includes presses, photocopiers, typesetting devices, photomechanical transfer machines, and other graphic arts equipment in use by University service departments, or which performs a service or creates a product already provided on the campus.
e. Motor vehicles, except replacements or those specifically approved by the Business Manager.
f. Entertainment -- see V-11.25 below.
g. Personalized items of printing such as letterheads, noteheads, memorandum sheets, etc. However, University business cards may be purchased from the University's Printing Department upon requisition by which the ordering department signifies approval of personalized cards for persons whose duties require them to represent the University in business and professional matters.
h. Printing and printing-related work, including photocopying. See VI-21 Printing Department.
11.23 TECHNOLOGY ALLOWANCE POLICY.
Departments and colleges may establish policies that are more restrictive, in terms of eligibility and compensation amount, than this University-wide policy.
b. Acquisition of communication devices and remote Internet. The University will no longer reimburse employees for ongoing business expenses related to communication devices (cell phones or PDAs with cellular capability, such as Blackberry or Treo) or remote Internet service, except for those circumstances noted under paragraph e ("Special situations") below. Instead, University employees who meet the eligibility requirements for business use will be given a predetermined amount of supplemental compensation to cover the approximate monthly cost of a cell phone or cellular PDA, and/or remote Internet service.
For those who qualify, this policy authorizes the monthly payment of supplemental, taxable compensation as follows: a monthly allowance that is based on the approximate proportion of the service that is used for business purposes, not to exceed the actual monthly service cost incurred by the employee for the communication device or remote Internet service.
At the discretion of the employee's departmental administrator, the amount of supplemental compensation can be "grossed up" to negate the additional taxes that will be withheld on the supplemental compensation. To simplify this calculation, the implied tax rate will be 35 percent. The calculation to determine the monthly supplemental compensation is as follows:
Example:
Calculation of monthly supplemental compensation:
$50 x 50% = $25
Specifically, faculty and P&S employees are eligible to receive supplemental, taxable compensation if they meet all of the following criteria:
(2) the employee's job requires him or her to be readily accessible for frequent contact or critical contact with the public or with University administrators, faculty, staff, or students; and
(3) the requirement for accessibility extends to time away from campus (at home or traveling), involves on-call responsibilities, or the employee's job limits his or her access to regular land-line telephones or Internet access that would satisfy the required business communication needs; and
(4) a strong business case can be made that supports the University incurring the cost of the service.
e. Special situations.
(2) Pagers. Some departments currently use pagers for their communication needs. Since the cost of pagers is very nominal and because potential personal use does not pose a financial risk to the University, it is recommended that departments pay for pagers directly, therefore eliminating the reimbursement of these expenses.
(3) Exceptions. Employees who do not qualify for the supplemental compensation may submit an expense reimbursement request for occasional, incremental business expenses. Incremental business expenses are those calls that result in additional costs that are above and beyond the employee's normal calling plan (e.g., excess minutes, roaming charges).
When requesting reimbursement, the telecommunication expenses incurred by employees must be additional (incremental) costs and must be substantiated and documented with a copy of the bill in accordance with University policy and with applicable federal and state laws and regulations.
An example of a bona fide policy exception would be occasions where employees are traveling for University business and make calls to home or work that involve roaming charges. The University may reimburse those employees for their additional out-of-pocket roaming charges.
(4) International expenses. For employees who receive supplemental compensation, this policy allows for reimbursement of incremental expenses incurred when international travel is involved for official business calls and data transfer.
See Purchasing Policies and Procedures Guide, Appendix B, "Protocol for Obtaining Equipment on a Trial Basis."
For additional information and procedures, see the Purchasing Policies and Procedures Guide.
11.25 FOOD, BEVERAGE, FLOWERS, GIFTS, AND SIMILAR INCIDENTAL EXPENSES.
Note: All rates are exclusive of taxes and tips.
(3) Process for exceptions to exceed allowable business meal maximum amounts. Occasionally, the cost of providing meals or refreshments exceeds the maximum allowable meal amounts listed above. In these cases, the request for payment or reimbursement must be approved by the dean, department head, or budget officer, and will be routed by Accounts Payable for approval by the Executive Vice President and Provost, or the Senior Vice President and Treasurer, or their designees.
(4) Business meals while in travel status. When an employee is on travel status and the primary purpose of a meal is to conduct University business with individuals not employed by the University, the names and business affiliations of the participants, as well as the business purpose of the meeting, must be provided. The meal charges are subject to the limitations listed in this policy, and an itemized receipt of the charges must be submitted with the travel reimbursement form. The per diem allowance for the traveler must be reduced by the appropriate meal allowance in lieu of the business meal provided. Travel reimbursement is subject to the guidelines in V-22 Travel Regulations.
(5) Recognition events. Reimbursement for recognition events is contingent upon the department having an approved "Rewards and Recognition" plan on file in the department.
d. For further guidance on interpretation of this policy, please refer to the question and answer document at www.uiowa.edu/~fusap/ap/Documents/OpsManualV%2011%2025Guidance%20v11%20011007.doc.
The Purchasing Department handles convenience copier acquisitions and record keeping for all University Departments.
(1) Increased savings;
b. Request for Quotation (RFQ). The Request for Quotation is used for acquisitions based solely on cost. The University issues formal RFQs for all goods and services greater than $10,000 in value unless a sole-source justification is received and approved. (See V-11.8 Waiver of Bidding Requirements.)
(2) Exact communication of wants and needs;
(3) Equal and fair access to all qualified vendors;
(4) Compliance with University, Regent, state, and federal acquisition regulations and laws;
(5) Improved information provided by vendors;
(6) Objective evaluation for awards;
(7) Services of an experienced purchasing professional; and
(8) An established contract under which the vendor is legally obligated to perform.
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Bid security shall be used in cases where the purchasing agent determines there is a need to protect the interest of the University. The need for bid security may, in part, be determined by the size of the proposed purchase, the item or items being bid, the competitive conditions surrounding the purchase, and the history of such purchases including general reliability of vendors being requested to bid a particular purchase.
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The names of the bidders and the amounts bid shall be supplied to any person upon request after the opening of the bids and as soon as the evaluation of the bids is completed and the award is made. Information will not be released in situations in which the release would provide a competitive advantage to any of the bidders.
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Bids may be withdrawn prior to the time set for receipt of bids. Bids may not be withdrawn after that time, except as noted herein, without penalty. (For capital projects, see the Regents Policy Manual, Chapter 9.) Only in the event of an obvious and documented error where it would be a manifest injustice to require the vendor to perform, can a vendor withdraw a bid after the time set for receipt of bids. Such withdrawal of bids can be done only upon the recommendation of the institution under procedures approved by the executive director (RPG 8.04C).
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The Purchasing Department has sole discretion to waive competitive bidding requirements in certain situations, including but not limited to:
a. Immediate need. It can be demonstrated without question that the requiring department could not have foreseen the required purchase in sufficient time for normal purchasing procedures to be used.
11.10 PURCHASES REQUIRING REGENT APPROVAL OR SPECIAL HANDLING.
(1) Compatibility with existing equipment. This justification may be used if the goods or services are being purchased to directly interface with or attach to equipment of the same manufacturer, and no other manufacturer's goods will correctly interface with existing equipment.
d. Noncompetitive justification: The following may be reasons for using noncompetitive procurement methods:
(1) Patent rights, copyrights, secret processes, or control of basic raw materials may preclude competition, although they do not in and of themselves always justify using noncompetitive procurement.
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(1/03)
(1) Professional service agreements are contracts for unique, technical, and/or infrequent functions performed by an independent contractor qualified by education, experience, and/or technical ability to provide services. In most cases these services are of a specific project nature, and are not a continuing, ongoing responsibility of the institution. The services rendered are predominately intellectual in character even though the contractor may not be required to be licensed. Professional service agreements may be with partnerships, firms, or corporations, as well as with individuals.
b. Other special purchases. For information on the following, see the Regents Policy Manual, Chapter 7.05:
(a) Performance requirements. Performance requirements should be precise and written in such a way that it can easily be determined if and when the contractor has successfully fulfilled his or her obligations under the agreement. Consequences for noncompliance such as non-payment and/or termination of the contract must also be defined. Scheduled due dates that specify milestone targets must be clearly identified and may include, but not be limited to, regular meetings scheduled to evaluate progress, identification of problem areas to determine actions to be taken to resolve any concerns, dates for formal written reports, required oral progress reports, and contract monitoring requirements.
(1) Moveable and fixed equipment with a unit cost greater than $250,000 or a total purchase cost of $500,000;
11.11. PURCHASE OF INSURANCE.
(2) Iowa state industries;
(3) Iowa products and labor;
(4) Targeted small business.
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Purchase of insurance may only occur via the Office of the University Risk Manager (see V-15 Risk Management and Insurance).
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The Director of Purchasing, with the approval of the Senior Vice President for Finance and Operations or the University Business Manager, may delegate purchasing authority to employees who have satisfactorily completed training and who have demonstrated competence and prior compliance with purchasing requirements. The degree and nature of such delegation will be specific for each such delegation and will be stated in writing by the Director of Purchasing. A delegation is subject to being rescinded at any time.
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Purchases of equipment that are to be financed on a lease-purchase or similar basis shall be forwarded to the Business Manager's Office for review and shall contain a summary setting forth the financing cost for comparison with the terms offered for equipment financing under the Regents' master lease agreement.
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The Regents Policy Manual, 7.07, is explicit regarding University business transactions with employees of Regents institutions and should be consulted directly as the need, or question, arises. "Employee shall mean a paid employee of the State of Iowa, the employee's spouse or minor children, and any firm of which any of those persons is a partner or sole proprietor, as well as any corporation of which any of those persons holds five percent or more stock either directly or indirectly."
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(Amended 5/02)
a. Definitions.
11.16 REFERENCE CATALOGS.
(1) "Personal relationship" means relationship with another sufficiently close that a reasonable person would believe that it would be most difficult for a faculty or staff member to deal with the person as he or she would deal with a stranger.
b. General Policy.
(1) Purchases from faculty or staff members exceeding $1,000 for one transaction or $2,000 in one year must be approved by the Board of Regents, State of Iowa.
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The Purchasing Department maintains a significant file of catalogs, reflecting current prices for equipment, goods, and services for the information of all departments. Negotiations for purchases, including requests for quotation of prices, must be accomplished through the Purchasing Department.
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(Amended 6/05)
a. Workflow approvals.
11.18 REQUISITIONS FOR ON-CAMPUS SUPPLIES AND SERVICES.
(1) Two individuals must approve all requisitions. The first approval shall be that of the individual requesting/initiating a purchase, and the second approval shall be that of a departmental executive officer, designated subordinate, dean of the college, or other chief administrative officer.
b. General policy. Except as indicated below, acquisitions from outside vendors are made by means of purchase orders issued directly by the Purchasing Department under the delegated authority of the Director of Purchasing.
(1) Prepayments of less than $2,000 do not require issuance of a formal purchase order unless required by the vendor. Prepayments under $2,000 are processed by submitting the voucher and invoice form, along with appropriate and substantiating documentation, to Accounts Payable. Faxed documentation from vendors is acceptable.
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(Amended 12/04)
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Departments hold responsibility for oversight of non-P.O. vouchers and invoice forms and procurement cards subject to compliance with the requirements of V-11.19-20 and competitive bidding principles embodying a duty to secure goods and services of the best quality and price.
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A procurement credit card is available to departments to obtain low-cost, non-equipment items with a per-transaction limit of $2,000 and a monthly total limit of up to $10,000. Departments may have as many cards as required to reasonably meet such procurement needs. With this authority, the department assumes the responsibility to comply with all state, Regent,
and University policies governing procurement operations. See the Purchasing Policies and Procedures Guide for detailed procurement credit card procedures.
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a. General policy. When purchase order invoices are received from vendors, they are audited against the purchase order number they reference. Invoices not referencing a purchase order number may be returned to the vendor or forwarded to the requesting department for this information before they are processed.
11.22 ITEMS WHICH MAY NOT BE PURCHASED.
(1) Vouchers should be reviewed promptly to ensure that any cash discounts are processed in the proscribed time period.
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(Amended 9/98; 6/04; 7/1/06)
a. Alcoholic Beverages -- see V-11.25 below.
For more information on items which may not be purchased on purchase order or procurement card, see the Purchasing Policies and Procedures Guide.
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(5/03; 8/1/07; 10/1/07; 3/08)
a. Introduction. The University of Iowa recognizes that the performance of certain job responsibilities may be enhanced by the provision of communication devices or use of home Internet services. For purposes of this policy, a "communication device" is defined as a cell phone or personal digital assistant (PDA) that allows for two-way communication. "Remote Internet service" is defined as any method for bringing Internet service to a computer for the purpose of performing work-related duties at a location other than a University office. This policy establishes methods for making a communication device or remote Internet service available to employees, in conformance with U.S. tax regulations and practices being adopted at peer institutions resulting from Internal Revenue Service audits.
11.24 GUIDELINES FOR ACCOUNTING FOR EQUIPMENT THAT IS ON TRIAL, LOAN, DEMONSTRATION, OR EVALUATION FROM A VENDOR AND NOT OWNED BY THE UNIVERSITY.
Agreed-upon service plan cost / (100% - 35%)
c. Eligibility requirements for providing communication devices or remote Internet service allowance. The guiding principle for eligibility is that the use of a communication device or remote Internet service by an employee is for the benefit of the University, rather than for the convenience of the employee. This policy applies only to faculty and professional and scientific (P&S) staff. See paragraph e(1) below for how this policy applies to employees covered by a collective bargaining agreement.
Cell phone bill = $50 / month
Business use = 50%
$25 / (100% - 35%) = $25 / 65% = $38.46
(1) the employee is classified in the Human Resources system as P&S or faculty; and
d. Equipment costs. Departments may make a one-time taxable payment to the employee through the payroll system not to exceed the actual documented cost of the equipment. When applicable, these types of reimbursements may not be made more than once every two years. In all cases, the employee assumes ownership and all maintenance responsibility for the equipment.
(1) Departmentally owned contracts with pooled-minute plans. Certain units may have special needs that justify departmental ownership of cell phones with a pooled-minute plan. Delivery drivers, maintenance personnel, custodians, information technology services, nursing unit rotations, security, parking ramp personnel, and police officers are examples where phones are assigned or rotated among employees, or where the employees are covered under a bargaining unit. This would also include organizations that have multiple employees sharing a single cellular phone for on-call rotations. Faculty and staff may qualify for only intermittent and temporary use of departmentally owned cell phones, when the department determines there is a valid, documented business need. In this instance, the communication device can be provided to the employee under a pooled-minute plan for the department. Routine personal calls are not allowed on these contracts and are considered a violation of University policy.
f. For further guidance on interpretation of this policy, please refer to the question and answer document at www.uiowa.edu/~fusap/ap/Documents/TechAllowPolicyQs.pdf.
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(6/04; 7/1/06; 12/13/06)
a. Food and beverage expense (paid from any source of funds) and alcohol (if paid from an agency fund 950-997 or from a gift fund 520) may be approved for reimbursement if the following conditions have been met:
11.26 CONVENIENCE COPIER ACQUISITIONS.
(1) Justification -- a written justification documenting a clear University purpose for incurring the expense. The justification should include an explanation of why food or beverage was required at the meeting if it is not evident by the nature of the event. Examples of University purposes include but are not limited to the following:
b. Flowers, gifts, and other similar incidental expenses may be approved for reimbursement from any fund if a clear University purpose for incurring the expense is documented in writing. Examples of University purposes include but are not limited to the following:
(a) Business meetings,
(2) Allowable maximum amounts for business meals. Allowance for food and beverage expense is limited to an average of $55 per person per meal if food only or an average of $75 per person per meal for food and alcohol combined.
(b) Recognition events,
(c) Recruitment,
(d) Training,
(e) Guests performing a service,
(f) New employee orientation,
(g) Lectures, symposia, presentations, and
(h) Student orientation and support events.
(1) Death, birth, or other significant event in the lives of employees, family members, important dignitaries,
c. Requests for payment or reimbursement require two approval signatures. The person coordinating the event should sign. For purchases containing alcohol, one of the following must approve reimbursement: the DEO, business officer of the college or division, or dean or vice president of the employing division. Delegation of signatures for the purchase of alcohol is not permitted.
(2) Recognition events,
(3) Special events sponsored by a vice president or dean, and
(4) Special University-wide events.
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(12/05)
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Page last updated August 2009 by Office of the Senior Vice President for Finance and Operations